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Old 04-08-10, 11:48 PM
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Question Debt/Income question

I was currious to hear what the "average" persons debt/income ratio is?

I know are is 50/50 but we don't own our home.
Actually most of our debt is disposible monthly bills (water,elect ect).

So what percentage do you put away in savings every month?

No $ amounts just percentages!
 
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Old 04-09-10, 12:35 AM
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Our debt-to-income rating is 31. Our only debt is our mortgage. We have no credit card bills, no car/personal/business loans, no home equity lines. We have a 15-year mortgage on our house and if we didn't have to include the mandatory flood insurance we pay each month ( :angry: ), our rating would be 29. Most lenders urge borrowers to have a rating below 36. Anything above 36 is considered too risky.

**To calculate your debt-to-income rating (ratio), determine your net monthly income. Include all forms of income: commissions, bonuses, alimony, rental income, etc.

Next, determine your monthly debt payments including car loans, personal loans, mortgage/rent payments, credit cards, etc.

Now divide your monthly debt total by your net monthly income to get a decimal. (i.e. A quotient of .35 would be a score of 35)

Last edited by Dopey406; 04-09-10 at 12:40 AM.
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Old 04-09-10, 08:29 AM
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Ours is 21%, but we do not escrow our property taxes and insurance. If those were included in our monthly mortgage payments, we'd be closer to 30%. Like Deanna, our only debt is our mortgage and a home equity line of credit.
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Old 04-09-10, 09:49 AM
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Oh, yeah, we escrow our property taxes and insurance as well as mandatory flood insurance ( :angry: ). If not for that, we'd be at about 25%.
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Old 04-09-10, 09:53 AM
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Ours is about 37% right now but that is because we just purchased 20 acres of land on the lake and have to pay on it for a while to get the ratio back down. Our only bills are mortgage (we have flood too because of the hurricane area) and our new loan for the land. BUT we only borrowed $45,000 and the land price was $120,000 so we used some savings up to pay for that.
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